International Terminations Quiz

ANSWER: The answer is 1. The concept of “at-will” employment is unique to only the United States.

2. Having cause gives an employer justification to terminate without severance:
True, False

ANSWER: False. Even if an employer has cause, the company will likely be on the hook for severance payments.

3. Severance and payment in lieu of notice are the same thing:
True, False

ANSWER: False. Severance is separate and calculated differently. Often, a company must pay both, especially if the employer would like to forgo a mandatory notice period.

4. In many countries, non-compete contracts are:
– Valid, but difficult to enforce
– Illegal and should never be used
– Seen as invalid and unenforceableANSWER: Valid, but difficult to enforce, and employers

5. Immediately upon termination employers are required, in most countries, to pay:
– Accrued salary, vacation and any bonuses
– Long term service severance
– Mandatory severance
– Termination in lieu of notice
– All of the above

ANSWER: All of the above.

6. Employee severance outside of the U.S. is typically NOT based on:
Company, Age, Length of Services, Title
ANSWER: Company. Age, title, and length of service are key determining factors when it comes to severance outside of the United States.

7. Employee probationary periods…
– allow employers to exercise an “at will” employment period in the contract
– are no longer typical in international employment
– must be approved by the local employee, if offered
ANSWER: This time period is the closest an employee outside of the United States can get to being considered an “at-will” employee.

8. The first step you should take before initiating a termination of an employee is:
– determine termination pay out
– determine if you have cause
– review the employment contract
– contact local counsel
– provide the required mandatory notice
ANSWER: Always review the contract before you do anything else. Much, if not all, of what you’d need to know is in the employment contract.

9. Using a Global Professional Employer of Record:
– minimizes the risk by putting employees on a locally compliant payroll
– minimizes the complications of terminating a local employee by proactively addressing requirements and accruing mandatory severance
– shortens the time to hire from months to days and reduces the HR burden
– ensures compliance and a happy employee
– All of the above
ANSWER: All of the above

This material has been prepared for informational purposes only, and is not intended to provide, nor should you rely on it for, legal, tax, or accounting advice in any jurisdiction. You should consult your own legal, tax, and accounting advisors as part of your expansion plans.